Press Releases

Premier Exhibitions Reports Third Quarter Fiscal 2014 Results

Globe Newswire

ATLANTA, Jan. 13, 2014 (GLOBE NEWSWIRE) -- Premier Exhibitions, Inc. (Nasdaq:PRXI), a leading presenter of museum-quality touring exhibitions around the world, today announced financial results for the third quarter of fiscal 2014 ended November 30, 2013.

Comparing the third fiscal quarter 2014 with the prior year's third fiscal quarter:

  • Total revenue decreased 19.2% to $6.4 million compared to $7.9 million in the third quarter of fiscal 2013. Exhibition and merchandise revenue in the third quarter of fiscal 2014 were negatively impacted by strong comparisons, as we presented this quarter in smaller markets and had weaker attendance. Exhibition revenue was also negatively impacted by approximately $600 thousand (based on comparable results for the same period of fiscal 2013) due to the Hurricane Sandy-related shutdown of the semi-permanent exhibitions at The South Street Seaport in New York City.
  • Gross profit decreased to $2.4 million from $3.5 million in last year's third fiscal quarter.
  • Net loss after non-controlling interest was $233 thousand, or $0.00 per diluted share, compared to a net loss after non-controlling interest of $830 thousand, or $0.02 per diluted share, in last year's third fiscal quarter. The improvement was due to a non-cash gain on a note payable this quarter.
  • Adjusted EBITDA, a non-GAAP measure (1), was $(0.7) million, a decrease of $1.3 million from the prior year's results.
  • Total exhibition days were 1,170 compared to 1,246 in the third fiscal quarter of 2013.
  • Average attendance per exhibition day was 298 compared to 399 in last year's third fiscal quarter.
  • Average ticket prices at semi-permanent museum and other locations increased 0.5% to $16.08 compared to $16.00 in the third quarter of fiscal 2013.
  • General and administrative expenses decreased 2.1% to $3.2 million, compared to $3.3 million in last year's third fiscal quarter as the Company incurred lower salaries and wages and stock compensation expense that were offset largely by an increase in professional fees during the third quarter of fiscal 2014.
  • The Company recognized a gain on note payable fair market value adjustment of $2.4 million during the third quarter of fiscal 2014, based upon updated future cash flow projections of the exhibitions related to the AEG Live, LLC note payable.
  • During the three months ended November 30, 2013, the Company wrote-off assets of $798 thousand. This write-off represents the assets related to the termination of the non-binding letter of intent for the sale of the Titanic assets and long-term development cost related to an exhibition that was under production but terminated by the Company.
  • On November 30, 2013, the Company had total cash and marketable securities of $4.4 million.

Michael Little, Premier's Chief Financial Officer and Chief Operating Officer, stated, "Given the strong exhibition and merchandise comparisons from the prior year, including contributions from the Seaport in New York City, our lackluster performance during the third quarter of fiscal 2014 was not unexpected yet still disappointing. The decline in revenue was due to lower attendance levels and fewer merchandise sales, and while our cost controls remain tight, we could not reduce expenses sufficiently to stave off decreases in gross profit and adjusted EBITDA."

Little continued, "Growing our revenue stream from current levels through new content development and securing self-operated exhibition space in high tourist areas is critically important, but these objectives must also be executed in tandem with improving the performance of our existing properties. We will therefore be launching new creative messaging for our self-run exhibitions over the next few weeks to bring their stories to life across paid, owned and earned media with the goal of spurring renewed interest in these venues."

Samuel Weiser, Premier's President and Chief Executive Officer, stated, "We are moving forward with exciting new exhibition opportunities that, together with the One Day in Pompeii artifact-based exhibition, will further evolve and diversify our portfolio. Specifically, we are continuing to identify new content opportunities including our Ice AgeTM exhibition focused on the science of climate change and our Federal Bureau of Investigation project. In addition, we continue to explore new content across the full spectrum of opportunities. We believe our new content concepts will garner considerable public interest while affording us with margin-enhancing merchandising opportunities."

Third Fiscal Quarter 2014 Conference Call Information

Premier Exhibitions, Inc. will host a conference call to discuss its financial results on January 13, 2014, at 5:30 PM. (EST).  Investors in the U.S. can access the call by dialing 1-888-481-2877 and international callers may dial 1-719-325-2448. Callers should reference Conference ID number 7675063. A transcript of the conference call will be made available on the Company's website: www.prxi.com.

(1) Adjusted EBITDA

See Table 4 below for reconciliations of Adjusted EBITDA to GAAP Net income.

This press release contains certain financial measures that are not prepared in accordance with GAAP (generally accepted accounting principles in the U.S.). Such financial measures are referred to herein as "non-GAAP" and are presented in this press release in accordance with Regulation G as promulgated by the Securities and Exchange Commission. A reconciliation of each such non-GAAP measure to its most directly comparable GAAP financial measure, together with an explanation of why management believes each such non-GAAP financial measure provides useful information to investors, is provided below.

Adjusted EBITDA is a non-GAAP financial measure that the Company defines as earnings before certain unusual and/or non-cash charges, depreciation and amortization, loss/(gain) on sale of operating assets, impairment of intangible assets and fixed assets, and non-cash compensation expenses. The Company uses Adjusted EBITDA to evaluate the performance of its operating segments. The Company believes that information about Adjusted EBITDA assists investors by allowing them to evaluate changes in the operating results of the Company's portfolio of businesses separate from non-operational factors that affect net income, thus providing insights into both operations and the other factors that affect reported results. Adjusted EBITDA is not calculated or presented in accordance with GAAP. A limitation on the use of Adjusted EBITDA as a performance measure is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenue in the Company's business. Accordingly, Adjusted EBITDA should be considered in addition to, and not as a substitute for, operating income/(loss), net income/(loss), and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies. Therefore, Adjusted EBITDA as presented herein may not be comparable to similarly titled measures of other companies.

About Premier Exhibitions

Premier Exhibitions, Inc. (Nasdaq:PRXI), located in Atlanta, GA, is a major provider of museum quality exhibitions throughout the world and a recognized leader in developing and displaying unique exhibitions for education and entertainment. The Company's exhibitions present unique opportunities to experience compelling stories using authentic objects and artifacts in diverse environments. Exhibitions are presented in museums, exhibition centers and other entertainment venues.

Additional information about Premier Exhibitions, Inc. is available at www.prxi.com.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve certain risks and uncertainties. The actual results or outcomes of Premier Exhibitions, Inc. may differ materially from those anticipated. Although Premier Exhibitions, Inc. believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any such assumptions could prove to be inaccurate. Therefore, Premier Exhibitions, Inc. can provide no assurance that any of the forward-looking statements contained in this press release will prove to be accurate.

In light of the significant uncertainties and risks inherent in the forward-looking statements included in this press release, such information should not be regarded as a representation by Premier Exhibitions, Inc. that its objectives or plans will be achieved. Included in these uncertainties and risks are, among other things, fluctuations in operating results, general economic conditions, uncertainty regarding the results of certain legal proceedings and competition. Forward-looking statements consist of statements other than a recitation of historical fact and can be identified by the use of forward-looking terminology such as "may," "intend," "expect," "will," "anticipate," "estimate" or "continue" or the negatives thereof or other variations thereon or comparable terminology. Because they are forward-looking, such statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Premier Exhibitions, Inc. most recent Annual and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled "Risk Factors." Premier Exhibitions, Inc. does not undertake an obligation to update publicly any of its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

    Table 1
Premier Exhibitions, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share data)
     
  November 30, February 28,
  2013 2013
  (Unaudited)  
ASSETS
     
Current assets:    
Cash and cash equivalents  $ 3,996  $ 6,393
Certificates of deposit and other investments  407  407
Accounts receivable, net of allowance for doubtful accounts of $325, respectively  1,573  1,370
Merchandise inventory, net of reserve of $50 and $25, respectively  1,319  1,205
Deferred income taxes  8  8
Income taxes receivable  243  167
Prepaid expenses   2,323  1,177
Other current assets  348  562
Total current assets  10,217  11,289
     
Artifacts owned, at cost  2,906  2,933
Salvor's lien  1  1
Property and equipment, net of accumulated depreciation of $18,979 and $17,333, respectively  9,990  9,280
Exhibition licenses, net of accumulated amortization of $5,808 and $5,664, respectively  1,890  2,034
Film, gaming and other application assets, net of accumulated amortization of $944 and $475, respectively  2,389  2,858
Other receivables, net of allowance for doubtful accounts of $819 and $574, respectively  --  34
Goodwill  250  250
Future rights fees, net of accumulated amortization of $329 and $0, respectively  4,051  4,380
Restricted assets  --  3,618
Long-term exhibition costs  138  843
Subrogation rights  250  250
Total Assets  $ 32,082  $ 37,770
     
     
LIABILITIES AND SHAREHOLDERS' EQUITY
     
Current liabilities:    
Accounts payable and accrued liabilities  $ 4,049  $ 4,146
Income taxes payable  --  175
Deferred revenue  2,798  2,363
Current portion of capital lease obligations  40  24
Current portion of notes payable, net of discount of $47 and $362, respectively  124  5,080
Total current liabilities  7,011  11,788
     
Long-Term liabilities:    
Lease abandonment  1,559  1,903
Deferred income taxes  8  8
Long-term portion of capital lease obligations  71  83
Long-term portion of notes payable, net of discount of $222 and $340, respectively  1,358  2,629
Total long-term liabilities  2,996  4,623
     
Commitment and Contingencies    
     
Shareholders' equity:    
Common stock; $.0001 par value; authorized 65,000,000 shares; issued 48,987,206 and 49,072,364 shares, respectively; outstanding 48,985,197 and 49,070,355 shares, respectively  5  5
Additional paid-in capital  53,743  53,807
Accumulated deficit  (34,240)  (34,916)
Accumulated other comprehensive loss  (462)  (471)
Less treasury stock, at cost; 2,009 shares   (1)  (1)
Equity Attributable to Shareholders of Premier Exhibitions, Inc.  19,045  18,424
Equity Attributable to Non-controlling interest  3,030  2,935
Total liabilities and shareholders' equity  $ 32,082  $ 37,770
         
        Table 2
Premier Exhibitions, Inc.
Condensed Consolidated Statements of Comprehensive Income/(Loss)
(in thousands, except share and per share data)
(unaudited)
         
  Three Months Ended November 30, Nine Months Ended November 30,
  2013 2012 2013 2012
Revenue:        
Exhibition revenue  $ 5,003  $ 5,453  $ 17,822  $ 25,024
Merchandise revenue  1,201  2,209  4,766  7,108
Management fee  188  250  563  611
Licensing fee  --  --  --  59
Total revenue  6,392  7,912  23,151  32,802
         
Cost of revenue:        
Exhibition costs  3,565  3,559  9,737  12,206
Cost of merchandise sold  477  863  1,767  2,646
Total cost of revenue (exclusive of depreciation and amortization shown separately below)  4,042  4,422  11,504  14,852
         
Gross profit  2,350  3,490  11,647  17,950
         
Operating expenses:        
General and administrative  3,234  3,304  9,870  11,476
Depreciation and amortization  1,085  918  3,068  2,649
Gain on note payable fair market value adjustment  (2,414)  --  (2,414)  --
Write-off of assets  798  --  798  --
(Gain)/loss on disposal of assets  3  --  (71)  --
Contract and legal settlements  --  --  (297)  --
Total operating expenses  2,706  4,222  10,954  14,125
         
Income/(loss) from operations  (356)  (732)  693  3,825
         
Interest expense  (66)  (211)  (303)  (543)
Gain on debt modification  --  10  --  81
Other income  71  3  218  20
         
Income/(loss) before income taxes  (351)  (930)  608  3,383
         
Income tax expense/(benefit)  (163)  49  (163)  277
         
Net income/(loss)  (188)  (979)  771  3,106
Less: Net (income)/loss attributable to non-controlling interest  (45)  149  (95)  (58)
Net income (loss)/attributable to the shareholders of Premier Exhibitions, Inc.  $ (233)  $ (830)  $ 676  $ 3,048
         
Net income/(loss) per share:        
Basic income/(loss) per common share  $ 0.00  $ (0.02)  $ 0.01  $ 0.06
Diluted income/(loss) per common share  $ 0.00  $ (0.02)  $ 0.01  $ 0.06
         
Shares used in basic per share calculations   49,234,187  48,029,592  49,284,177  47,988,433
Shares used in diluted per share calculations  49,234,187  48,029,592  49,433,927  49,094,927
         
Comprehensive income/(loss)  $ (224)  $ (830)  $ 684  $ 3,055
         
        Table 3
Premier Exhibitions, Inc.
Condensed Consolidated Statements of Cash Flow
(in thousands)
(unaudited)
         
  Three Months Ended November 30, Nine Months Ended November 30,
  2013 2012 2013 2012
Cash flows from operating activities:        
Net income/(loss)  $ (188)  $ (979)  $ 771  $ 3,106
         
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization  1,085  918  3,068  2,649
 Lease abandonment  (77)  (150)  (344)  (439)
 Gain on note payable fair market value adjustment  (2,414)  --  (2,414)  --
 Write-off of assets  798  --  798  --
 Gain on debt modification  --  (10)  --  (81)
Stock-based compensation  134  96  285  649
Allowance for doubtful accounts  84  93  245  288
Amortization of debt discount  64  211  296  540
(Gain)/loss on disposal of assets  3  --  (71)  --
Changes in operating assets and liabilities:        
(Increase)/decrease in accounts receivable  (229)  882  (203)  (296)
(Increase)/decrease in merchandise inventory, net of reserve  73  98  (114)  (260)
Increase in prepaid expenses   (384)  (257)  (1,514)  (352)
(Increase)/decrease in other assets  160  (23)  214  (78)
Increase/(decrease) in income taxes receivable  10  (45)  (76)  91
Decrease in other receivables  (84)  (101)  (211)  (273)
Increase/(decrease) in long-term development costs  119  (160)  71  (160)
Decrease/(increase) in accounts payable and accrued liabilities  (424)  (55)  (97)  (364)
Decrease/(increase) in deferred revenue  1,001  350  435  (164)
Decrease/(increase) in income taxes payable  (175)  34  (175)  153
Total adjustments  (256)  1,881  193  1,903
Net cash provided/(used in) by operating activities  (444)  902  964  5,009
         
Cash flows from investing activities:        
Purchases of property and equipment  (358)  (200)  (2,970)  (545)
Proceeds from disposal of assets  --  --  74  --
Acquisition of Exhibit Merchandising, LLC  --  --  --  (125)
Decrease in artifacts  7  10  27  47
Net cash used in investing activities  (351)  (190)  (2,869)  (623)
         
Cash flows from financing activities:        
Proceeds from option and warrant exercises  --  --  185  136
Purchase of treasury stock  (534)  (18)  (534)  (96)
Payments on capital lease obligations  (7)  (2)  (22)  (2)
Payments on notes payable  --  (145)  (130)  (625)
Net cash used in financing activities  (541)  (165)  (501)  (587)
         
Effects of exchange rate changes on cash and cash equivalents  8  --  9  7
         
Net increase/(decrease) in cash and cash equivalents  (1,328)  547  (2,397)  3,806
Cash and cash equivalents at beginning of period  5,324  5,603  6,393  2,344
Cash and cash equivalents at end of period  $ 3,996  $ 6,150  $ 3,996  $ 6,150
         
Supplemental disclosure of cash flow information:        
Cash paid during the period for interest  $ 2  10  $ 330  $ 52
Cash paid/(received) during the period for taxes  $ (68)  59  $ 88  $ 33
Supplemental disclosure of non-cash investing and financing activities:        
Unrealized gain/(loss) on marketable securities  $ 1  $ --  $ (1)  $ --
Purchases of property and equipment under capital leases  $ --  $ --  $ 26  $ 115
Assets purchased with notes payable and equity in Premier Merchandising, LLC  $ --  $ --  $ --  $ 14,451
         
        Table 4
Adjusted EBITDA
(In thousands)
         
         
  Three Months Ended Nine Months Ended
  November 30, 2013 November 30, 2012 November 30, 2013 November 30, 2012
  3Q14 3Q13 3Q14 3Q13
         
Net income/(loss)  $ (188)  $ (979)  $ 771  $ 3,106
Income tax expense/(benefit)  (163)  49  (163)  277
Interest expense  66  211  303  543
Gain on debt  --  (10)  --  (81)
Other income  (71)  (3)  (218)  (20)
Gain on note payable fair market value adjustment  (2,414)  --  (2,414)  --
Write-off of assets  798  --  798  --
Gain on disposal of assets  3  --  (71)  --
Impact of Hurricane Sandy on New York-Seaport  121  320  908  320
Depreciation and amortization  1,085  918  3,068  2,649
Litigation settlement  --  --  (297)  --
Stock-based compensation  108  169  164  807
Adjusted EBITDA(1)  $ (655)  $ 675  $ 2,849  $ 7,601
         
(1) Adjusted EBITDA
 
Adjusted EBITDA is defined as earnings before certain unusual and/or non-cash charges, depreciation and amortization, loss/(gain) on sale of operating assets, impairment of intangible assets and goodwill, and non-cash compensation expenses. The Company uses Adjusted EBITDA to evaluate the performance of its operating segments. Adjusted EBITDA should be considered in addition to, and not as a substitute for, operating income/(loss), net income/(loss), and other measures of financial performance reported in accordance with GAAP. 
        Table 5
Summary of General & Administrative expense
(In thousands)
         
         
  Three Months Ended Nine Months Ended
  November 30, 2013 November 30, 2012 November 30, 2013 November 30, 2012
  3Q14 3Q13 3Q14 3Q13
         
Compensation, excluding stock-based compensation  $ 1,550 $1,870  $ 4,875  $ 5,697
Stock-based compensation  108  169  164  807
Bad debt expense  --  --  --  14
Legal and other professional fees  513  413  1,825  2,219
Rent and other office expenses  471  337  1,196  1,013
Other  592  515  1,810  1,726
General & Administrative expense  $ 3,234  $ 3,304  $ 9,870  $ 11,476
Table 6
Exhibition Revenue & Operating Statistics
(In thousands)
         
  Three Months Ended Nine Months Ended
  November 30, 2013 November 30, 2012 November 30, 2013 November 30, 2012
  3Q14 3Q13 3Q14 3Q13
         
Admissions revenue  $ 4,274  $ 4,876  $ 15,103  $ 21,657
Non-refundable license fees  729  577  2,719  3,367
Total exhibition revenue  $ 5,003  $ 5,453  $ 17,822  $ 25,024
         
Total number of exhibitions presented  23  26  31 32
Semi-permanent exhibitions presented  7  7 7 8
Partnered exhibitions presented  10  18  17 21
Exhibitions rented to promoters or museums  6  1  7 3
Total operating days for semi-permanent, partner and rented exhibitions  1,170  1,246  3,590  4,205
Total attendance for semi-permanent and partner presented exhibitions (in 000's)  304  497  1,237  2,245
Average attendance per day for semi-permanent and partnered exhibitions presented  298  399  386  534
Average ticket price for semi-permanent and partnered exhibitions presented  $ 16.08  $ 16.00  $ 14.72  $ 14.93
Average retail per attendee for semi-permanent and partnered exhibitions presented  $ 3.25  $ 3.54  $ 3.38  $ 3.25
         
Semi permanent exhibitions:        
Total operating days  635  546  1,617  1,760
Total attendance (in 000's)  200  178  566  808
Average attendance per day  315  327  350  459
Average ticket price  $ 19.26  $ 22.99  $ 20.80  $ 22.10
Average retail per attendee  $ 3.23  $ 3.54  $ 3.61  $ 3.24
         
These key non-financial measurements do not include exhibitions under management.        
          Table 7
           
Historical Statistics  Three Months Ended
  November 30, 2013 August 31, 2013 May 31, 2013 February 28, 2013 November 30, 2012
  3Q14 2Q14 1Q14 4Q13 3Q13
Total number of exhibitions presented  23  16  19  16  26
Semi-permanent exhibitions presented  7  7  5  5  7
Partnered exhibitions presented  10  7  12  10  18
Exhibitions rented to promoters or museums  6  2  2  1  1
Total operating days for semi-permanent, partner and rented exhibitions  1,170  1,298  1,122  1,150  1,246
Total attendance for semi-permanent and partner presented exhibitions (in 000's)  304  388  546  459  497
Average attendance per day for semi-permanent and partnered exhibitions presented  298  347  510  399  399
Average ticket price for semi-permanent and partnered exhibitions presented  $ 16.08  $ 15.21  $ 13.62  $ 14.62  $ 16.00
Average retail per attendee for semi-permanent and partnered exhibitions presented  $ 3.25  $ 3.33  $ 3.67  $ 3.03  $ 3.54
           
Semi-permanent exhibitions:          
Total operating days  635  522  460  448  546
Total attendance (in 000's)  200  194  172  135  178
Average attendance per day  315  372  374  302  327
Average ticket price  $ 19.26  $ 21.42  $ 21.90  $ 22.53  $ 22.99
Average retail per attendee  $ 3.23  $ 3.86  $ 3.75  $ 3.61  $ 3.54
           
These key non-financial measurements do not include the exhibitions under management.        

CONTACT: Investor Contact: Michael J. Little Chief Financial Officer and Chief Operating Officer (404) 842-2600 michael.little@prxi.com

Source:Premier Exhibitions, Inc.